Bear Corporation Has a Net Short-Term Capital Gain of $35,000

question 99

Multiple Choice

Bear Corporation has a net short-term capital gain of $35,000 and a net long-term capital loss of $200,000 during 2012.Bear Corporation has taxable income from other sources of $600,000.Prior years' transactions included the following: Compute the amount of Bear's capital loss carryover to 2013.

• A)$0.
• B)$60,000.
• C)$105,000.
• D)$165,000.
• E)$200,000.

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Definitions:

Call Contract

A financial contract that gives the buyer the right, but not the obligation, to buy a specified amount of an asset at a predetermined price within a specified time period.

Write

In finance, to sell an option contract, effectively creating a new option in the market.

Call Option

A financial contract that gives the buyer the right, but not the obligation, to buy an asset at a specified price within a specified period.

Premium

The amount paid for an option or insurance policy over its intrinsic value or the amount by which the price of a bond exceeds its face value.